JAKARTA. Jakarta Composite Index (JCI ) is expected to move in positive zone, after tax amnesty recorded significant result until the end of the first period of the program. As of 30 September 2016, government has succeeded to collect IDR97 trillion of tax amnesty revenues.

The significant result may drive domestic economy, and subsequently affect market players’ confident on national economy.

Head of Research at Universal Indonesia Satrio Utomo said that tax amnesty has affected stock trade at Indonesia Stock Exchange (IDX) since the last few months.

Since the beginning of 2016 until Friday (30/9), IDX booked IDR34.45 trillion of foreign investors’ net buy, while IDX experienced IDR13.13 trillion of foreign tinvestors’ net sell during the same period in 2015.

According to Director of Avere Investama Teguh Hidayat the realization of tax amnesty may inderectly bring positive sentiment to IDX.

As of the last week, IDX closed lower by 1.24% to 5,364.80. However, along this year JCI hikes by 17%. JCI has also showed the best performance among stock exchanges in Asia Pacific.

However, Teguh reminds that the JCI  will also be affected by issuers’ performance. In this case, investors seem to adopt wait and see stance over issuers’ performance. The performance will be reflected on the issuers’ financial performance report during the third quarter of 2016.

The United States of America or the US presidential election will also affect JCI’s performance. Analyst at Indosurya Securities William Surya Wijaya predicted that the result of the election may affect to policy change in the country, including on the Fed Fund Rate.

William projected that JCI has potential to increase to 5,800 and 6,138 in the end of 2016 and in 2017, respectively.

Director of Avere Investama Teguh Hidayat predicted that JCI will be ranging at the level of 5,400 to 5,500. Meanwhile Satrio projected that JCI will stand at 5,800 and hit the level of 6,300 in the first semester of 2017.

(Muhammad Farid/Translator)

Editor: Barratut Taqiyyah Rafie